GIFT City Mutual Funds List: Which Are the Best for NRIs in 2026?

Priya has been investing in Indian mutual funds through her NRE account for four years.

Last year, she started asking a different question.

"I earn in dirhams. I invest in rupees. Every year, the rupee loses ground. What is actually happening to my real returns?"

She was right to ask. The INR has depreciated significantly against the dollar over the past decade. For an NRI investing in rupee-denominated instruments, that depreciation quietly erodes USD-adjusted returns even when the fund itself performs well.

GIFT City mutual funds solve exactly this problem.

They let NRIs invest in Indian or global markets through USD-denominated funds, regulated in India, with full repatriability and a simpler tax structure than standard NRE-linked investments.

And now, with retail funds starting at just $500, GIFT City investing is no longer reserved for the wealthy.

Here is the full list of GIFT City mutual funds currently available, what each one does, and which ones make sense for different types of investors.

What Makes GIFT City Mutual Funds Different

Before comparing funds, understand what puts these in a separate category from regular Indian mutual funds.

GIFT City mutual funds operate under the regulation of IFSCA at Gujarat International Finance Tec-City and are USD-denominated. This helps investors avoid risks associated with rupee fluctuations while building a diversified investment portfolio.

For NRIs, the key advantages are:

Currency structure: You invest in USD, your account is valued in USD, and you receive USD when you redeem. The rupee depreciation that silently erodes NRE-linked fund returns does not apply at the entry and exit level.

Tax simplicity: Non-resident investors earning income solely from IFSC-based funds are exempt from filing tax returns in India, and a PAN is not required for investing.

Full repatriability: Both principal and returns can be freely sent back to your country of residence without the FEMA restrictions that apply to standard NRO-linked investments.

No SEBI overseas investment cap: Since these funds are set up and regulated under IFSCA, they are not bound by SEBI's $7 billion overseas investment cap. They invest directly in global markets, giving investors access any time of the year without pauses or waiting lists.

For resident Indians, GIFT City funds offer the simplest legal route to USD-denominated global investing, without the full documentation complexity of LRS on each transaction.

👉 If you are a resident Indian with your entire portfolio in India, GIFT City mutual funds give you dollar-denominated diversification through a fund regulated in India, within familiar guardrails.

The Current GIFT City Mutual Funds List

The GIFT City retail mutual fund space is still early but growing fast. Here are the four retail funds currently available and what each one does.

1. Tata India Dynamic Equity Fund

Category: Inbound (India equity) Minimum investment: USD 500 Launched: September 2025

In September 2025, Tata Asset Management received IFSCA approval for the Tata India Dynamic Equity Fund, the first retail inbound mutual fund from GIFT City.

Previously, GIFT City was primarily for high-net-worth investors with $150,000 or more to invest. Now, any NRI can access tax-efficient Indian equity exposure with just $500.

What it does: This is an inbound feeder fund. It invests in Tata AMC's Indian equity mutual fund schemes and ETFs within India.

The fund dynamically allocates between broad-based equity funds (50 to 100% of assets) and sectoral or thematic opportunities in areas like technology, energy, and healthcare (up to 50%).

The objective of the fund is to generate long-term capital appreciation by primarily investing in units of mutual funds and ETFs in India or any other jurisdiction.

It is structured as an inbound feeder, investing in domestic equity mutual fund schemes and ETFs, dynamically allocated to a core portfolio of broad-based market-cap funds and a satellite portfolio of sectoral and international funds.

Who it suits: NRIs who want India equity exposure in a USD wrapper without rupee-related friction at entry and exit. Also suits NRIs who are just beginning to explore GIFT City investing, given the $500 minimum.

Tax angle for UAE NRIs: The fund operates under the IFSC framework. As a UAE-based NRI in a zero-tax jurisdiction, gains are not taxed in India at the fund level and not taxed in the UAE either.

No PAN or Indian income tax return is needed for this investment (Source: Income Tax Act Section 10(4D)).

Explore the Tata India Dynamic Equity Fund on Belong

2. DSP Global Equity Fund

Category: Outbound (global equity) Minimum investment: USD 5,000 Launched: June 2025

On June 2, 2025, DSP Mutual Fund launched India's first retail-focused offshore mutual fund, the DSP Global Equity Fund, from GIFT City.

It allows investors to invest in a diversified portfolio of global equities, and is the first open-ended mutual fund targeting retail investors to debut under GIFT City's updated 2025 framework.

What it does: The DSP Global Equity Fund gives investors an opportunity to own the world's strongest and most resilient companies through a USD-denominated fund regulated in GIFT City.

The fund targets large, high-quality companies with market caps above $30 billion across the US, Europe, Japan, Hong Kong, South Korea, and Canada. It follows a high-conviction, 30 to 50 stock portfolio built bottom-up through proprietary research.

The fund's AUM crossed $5 million by late 2025, with Amazon as the largest holding at 6.4% allocation.

The top 10 holdings include Tencent Holdings, Adyen, Booking Holdings, Trip.com, Brookfield Corp, PDD Holdings, and BYD. The top 10 holdings account for 38.4% of the portfolio.

Who it suits: NRIs and resident Indians who already have India equity exposure and want genuine global diversification. If you earn in AED and invest only in rupee assets, your entire financial life is India-concentrated. This fund changes that.

Important: This is an outbound fund. It invests in global companies, not Indian ones. It is not a hedge against Indian market downturns specifically, but it does reduce concentration in Indian equities.

Tax note: Capital gains are taxed at the fund level, not in the hands of the investor. For redemptions within two years, the fund deducts tax at 42%. After two years, it applies a 12.5% long-term capital gains rate. No additional tax filing is required from the investor.

Explore the DSP Global Equity Fund on Belong

3. Edelweiss Greater China Equity Fund

Category: Outbound (China and Greater China equity) Minimum investment: USD 500 Launched: Prior to 2025 (one of the earlier GIFT City retail launches)

What it does: This fund invests in Greater China equities, including mainland China, Hong Kong, and Taiwan, through a feeder structure into the JPMorgan Greater China Fund.

China's equity markets had a strong recovery through parts of 2024 to 2025, and Greater China remains a massive economy with deep technology, semiconductor, and consumer sectors.

The fund is also useful for NRIs who already hold Indian equities and US stocks but have no Asian market exposure. Expense ratio: 0.50% per annum for the direct plan, 1.50% for the regular plan.

These are fund-level charges and exclude the underlying JPMorgan fund's fees. Exit load of 1% if redeemed before 25 months.

Who it suits: NRIs and resident Indians seeking Asian market diversification beyond India. If your global exposure is limited to Indian equities and US-linked instruments, this fund fills a meaningful gap in portfolio construction.

A critical restriction: US and Canada-based NRIs cannot invest in this fund due to FATCA compliance requirements. For NRIs in the UAE, UK, Singapore, and most other jurisdictions, the fund is fully accessible.

Explore the Edelweiss Greater China Equity Fund on Belong

4. Sundaram India Mid Cap Fund

Category: Inbound (India mid cap equity) Minimum investment: USD 500 Launched: 2024 to 2025

What it does: This is an inbound feeder fund focused on India's mid-cap equity segment. It invests in Sundaram AMC's India-focused mid-cap strategies, giving USD-based investors access to the mid-cap growth story within India's equity markets.

India's mid-cap segment has historically delivered higher growth than large-cap over long horizons, with correspondingly higher volatility.

This fund suits NRIs who already have large-cap India exposure and want to add a mid-cap growth layer in a USD-denominated, repatriable structure.

Who it suits: NRIs with existing India equity exposure via large-cap or index-linked funds who want to expand into the mid-cap space without opening a new NRE-linked trading account.

Explore the Sundaram India Mid Cap Fund on Belong

Comparing the Four Funds

Which Fund Is Right for You?

The right answer depends on where you are starting from and what gap you are trying to fill.

If you are an NRI with no existing India equity exposure:

Start with the Tata India Dynamic Equity Fund. It gives you broad India equity coverage in a USD structure at a $500 minimum. It is the most accessible entry point into GIFT City mutual fund investing.

If you are an NRI with existing India equity but no global exposure:

The DSP Global Equity Fund is the most direct answer. It invests in the world's largest, most resilient companies across US, European, and Asian markets. Your India portfolio and your global portfolio can then operate independently, reducing single-market concentration risk.

If you want Asian exposure beyond India:

The Edelweiss Greater China Equity Fund adds a meaningful diversification layer for NRIs whose global exposure is currently limited to Indian and US-linked assets. Confirm FATCA eligibility before investing if you are US or Canada based.

If you have large-cap India exposure and want mid-cap growth:

The Sundaram India Mid Cap Fund extends your India equity allocation into a higher-growth, higher-volatility segment without adding a new account type.

If you want to build a complete GIFT City portfolio:

A combination of one inbound fund (Tata or Sundaram, depending on your cap preference) and one outbound fund (DSP for global, Edelweiss for Asia) gives you exposure to Indian growth and global diversification in a single USD-denominated framework.

👉 None of these funds should replace your emergency corpus or short-term savings. They are long-horizon equity investments. Think three years minimum, five-plus years ideally.

What About Resident Indians?

If you are a resident Indian investor reading this, GIFT City mutual funds are accessible to you too, specifically the outbound funds like the DSP Global Equity Fund and the Edelweiss Greater China Equity Fund.

These are outbound funds investing in global markets.

Resident Indians can invest up to $250,000 per year through the Liberalised Remittance Scheme (LRS) in outbound funds that invest outside India. Inbound funds investing in Indian securities are restricted to NRIs, OCIs, and foreign nationals.

For a resident Indian whose entire portfolio is in Indian mutual funds and stocks, GIFT City outbound funds are one of the cleanest available routes to USD-denominated global equity investing. You get professional management, a regulated Indian structure, and exposure to global companies, without managing a foreign brokerage account or dealing with international tax complexity on your own.

The INR has depreciated materially against the dollar over the past decade. A portfolio with no USD-denominated assets has a quiet concentration risk that compounds over time.

Explore all GIFT City mutual funds on Belong

Risks to Keep in Mind

GIFT City funds solve real problems. But they come with real risks too.

Currency risk in outbound funds: If the USD weakens against INR during your holding period, your USD-denominated global fund returns will convert to fewer rupees when you bring money back. This cuts both ways.

Market risk: All four funds invest in equities. Equity markets are volatile. Short-term NAV swings are normal.

Liquidity: GIFT City funds have lower liquidity when compared to standard domestic mutual funds, making it more difficult to sell investments quickly. These are not instruments for capital you may need within six months.

Exit loads: Each fund carries its own exit load structure. The Edelweiss Greater China Fund has a 1% exit load before 25 months. Check the offer document of each fund before investing.

Evolving regulatory framework: GIFT City is growing rapidly. The regulatory framework has expanded significantly since 2022. Tax treatment and product availability may continue to evolve. Stay updated via IFSCA and fund house communications.

What is Coming Next

More AMCs including Nippon India and Mirae Asset are planning similar retail launches. The ecosystem is expanding rapidly.

April 2026 brings a significant development: mutual funds and ETFs can relocate to GIFT City from offshore jurisdictions such as Mauritius and Singapore without triggering capital gains tax. This tax-neutral relocation will bring more funds to GIFT City.

The GIFT City fund universe is set to expand materially over 2026. Expect more AMCs, more strategies, and lower minimums as the ecosystem matures.

At Belong, we track every fund available at GIFT City and update our mutual funds explorer in real time. Compare all funds, track returns, and explore NRI FD rates alongside equity options.

For higher-ticket structured investment options, explore Alternative Investment Funds at GIFT City. For equity primary market access, our GIFT City IPO blog and IPO products page cover that dimension. The full mutual funds and GIFT Nifty tracker complete the picture for NRIs and resident Indians building informed, globally diversified portfolios.

FAQs

Q: Who can invest in GIFT City mutual funds?

NRIs and OCIs can invest in both inbound (India equity) and outbound (global equity) GIFT City funds. Resident Indians can invest only in outbound funds through LRS up to $250,000 per year. Inbound funds are restricted to non-residents.

Q: Do I need a PAN card to invest in GIFT City mutual funds?

For most retail mutual funds at GIFT City, PAN may be required for certain transactions. However, NRIs investing solely in Category I or II AIFs where the fund has deducted applicable taxes may not need PAN. Check the specific requirements with your fund or platform before investing.

Q: Is the minimum investment really $500?

Yes, for three of the four funds covered here. The DSP Global Equity Fund has a higher minimum of $5,000. This was a significant change from the earlier $150,000 minimum that applied to AIFs.

Q: Are GIFT City mutual fund returns taxable?

Tax is handled at the fund level for most GIFT City funds, not at the investor level. NRIs earning income solely from IFSC-based investments are exempt from filing Indian income tax returns. The specific tax treatment varies by fund type, so read the offer document carefully.

Q: Can US-based NRIs invest in all GIFT City mutual funds?

No. The Edelweiss Greater China Equity Fund is not available to US and Canada-based NRIs due to FATCA compliance requirements. The Tata and DSP funds are generally accessible across most NRI jurisdictions. Always confirm eligibility with your platform.

Q: How is GIFT City investing different from buying US stocks through a foreign brokerage?

GIFT City funds are regulated in India under IFSCA, managed by Indian AMCs, and operate within India's tax and regulatory framework. Foreign brokerage accounts are governed by the regulations of the country where the broker is based. GIFT City offers a structured, regulated approach with defined tax treatment, without requiring you to manage a foreign brokerage account independently.

This article is for educational purposes only and does not constitute investment advice. Mutual fund investments are subject to market risk. Please read all offer documents carefully and consult a SEBI-registered advisor before investing.